Advantages of free warehouses

Business studies study module
  • Owners of goods stored need not to pay any taxes, thus the goods cannot be auctioned for failure to pay customs duties
  • It is cheaper to store goods in free warehouses as compared to bonded warehouses since there are no customs duties levied.
  • Clearance of the goods from the warehouse is simple since a “release warrant” to prove payments of duties is necessary
  • These warehouses are located at places that are convenient to users

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